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In recent months, soils borings have indicated poor soils which will require additional soils corrections to <br />extend the utilities and create building pads. Also, the public improvements bids received to extend the utilities <br />and build the roadway were approximately 15% more than the engineers estimate. <br />These two factors, along with other factors, have made this project financially infeasible. As a result, the <br />developer is asking the City of Anoka to revisit the Joint Powers Agreement and consider not only paying for <br />the utility services for6050 and 6058 Highway 10, but also financially contributing to the trunk utility systems <br />that the services for these properties would connect to. <br />Based on discussions with the developer and the City of Ramsey Staff, it was determined that if the City of <br />Anoka contributed a total of $130,000 to fund a portion of the trunk system and all of the costs associated with <br />the services to 6050 and 6058 Highway 10 including, engineering and administration costs, this project could <br />proceed later this year. Staff believes this amount is reasonable and recommends that the Joint Powers <br />Agreement be amended to include language that the City of Anoka's contribution to this project shall not <br />exceed $130,000. Attached is a draft amended Joint Powers Agreement with the revisions underlined and <br />shown in red. <br />COUNCIL ACTION REQUESTED <br />It is recommended that the City Council adopt a resolution amending the Joint Powers Agreement with the City <br />of Ramsey for the construction and maintenance of utilities to serve 6050 and 6058 Highway 10. <br />150 of 168 <br />